50 Steps for Starting Your Business (including Organizational Structure) For New and Aspiring Entrepreneurs Presented by: Lynnette Colin Urban League of Greater New Orleans Women’s Business Resource & Entrepreneurship Center The Women’s Business Resource Center is funded in part by the US Small Business Administration. Opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the views of the SBA .
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50 Steps for Starting Your Business (including Organizational Structure) For New and Aspiring Entrepreneurs
50 Steps for Starting Your Business (including Organizational Structure) For New and Aspiring Entrepreneurs . Presented by: Lynnette Colin. Urban League of Greater New Orleans Women’s Business Resource & Entrepreneurship Center. - PowerPoint PPT Presentation
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50 Steps for Starting Your Business(including Organizational Structure)
For New and Aspiring Entrepreneurs
Presented by: Lynnette Colin
Urban League of Greater New OrleansWomen’s Business Resource & Entrepreneurship Center
The Women’s Business Resource Center is funded in part by the US Small Business Administration. Opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the views of the SBA .
Before You Start!
YOU Are On Display
YOU
BEFORE YOU START!Is Your Personal House In Order?
P F SPersonal Financial Statement
Personal Finances
Cash Flow
Credit
Character
ARE YOU READY? Do you have the Knowledge & Experience to run
this type of business?
Are you willing to undertake business start-up education to gain knowledge necessary to start a business venture?
Are you willing and able to make the substantial investment of time required to start a business? (Not Operate – Just the process of STARTING!)
ARE YOU READY?
Are You willing to conduct the appropriate research needed to complete a thorough business plan and produce accurate financial projections before starting the business?
Can you make difficult decisions quickly?
ARE YOU READY?
Can you live with uncertainty regarding your income?
Can you work long hours, handling multiple roles?
Can you separate the fate of your business from your own self-image?
Due Diligence &Market Research
Formulate the Idea for the new business Thoroughly research the Idea Create a name for the business Investigate competitors Protect your idea Determine adequate legal business structure
(Register with the State; get all appropriate licenses & permits)
Develop Relationships with professional service providers
Carefully consider your insurance needs Select your location
Location, Location, Location! - It’s not just a cliché!
Apply for necessary licenses, permits, etc.
Registrations, Licenses, etc.
Types of Business Structures
Sole Proprietorship
Partnership
Limited Liability Partnership
Corporation
Subchapter S Corporation
Limited Liability Company
Sole ProprietorshipA BUSINESS OWNED BY ONE INDIVIDUAL
PROS
Ease of Formation
Retention of Profits
Complete control of business decisions
Flow-Through Taxation Structure
CONS
Unlimited Liability
Limited Management Talent
Limited Access to Credit
Federal Income tax based on 100% of annual gross profits
PartnershipA BUSINESS OWNED BY TWO OR MORE INDIVIDUALS
PROS
Ease of Formation
Greater Access to Management Talent
Greater Access to Capital
Flow-Through Taxation Structure
CONS Unlimited Liability Open to Personal Conflicts
Life of the Partnership Fed. taxes based on
allocation of gross profits as a % of ownership.
Adding/Removing Partners
Limited Liability CompaniesLLC’s
Treated like a Partnership for Tax Purposes; like a Corporation for Liability intentions.
LLC’s are NOT incorporated. LLC’s have MEMBERS, not shareholders. Flow-through Taxation Structure No Easy Transfer of Ownership A Partnership can be converted into an LLC
[An LLC must dissolve in order to become a Corporation]
[Corporations must dissolve in order to form an LLC]
Limited Liability CompaniesLLC’s cont’d
Treated like a Partnership for Tax Purposes; and like a Corporation for Liability intentions.
LLC’s are NOT incorporated. LLC’s have MEMBERS, not shareholders. Flow-through Taxation Structure No Easy Transfer of Ownership A Partnership can be converted into an LLC
[An LLC must dissolve in order to become a Corporation]
[Corporations must dissolve in order to form an LLC]
50 Steps for Starting Your Business(including Organizational Structure)
For New and Aspiring Entrepreneurs
Presented by: Lynnette Colin
Urban League of Greater New OrleansWomen’s Business Resource & Entrepreneurship Center
The Women’s Business Resource Center is funded in part by the US Small Business Administration. Opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the views of the SBA .
Thank You For Your Participation
Urban League of Greater New OrleansWomen’s Business Resource & Entrepreneurship Center